AREVA: 2013 annual results: breakeven free operating cash flow objective
reached despite a difficult environment
*Sales revenue: €9.240bn (+6.4% like for like), driven by nuclear
operations (+7.1% like for like)
*Increase in EBITDA^1: €1.043bn (+€291m vs. 2012)
*Very significant improvement in free operating cash flow^2: €204m (+€927m
*Negative net income attributable to equity owners of the parent: -€494m
due to provisions and Renewable Energies losses
*Outlook of positive free operating cash flow before tax in 2014 and up
significantly in 2015-2016, despite uncertain short-term environment
PARIS -- February 26, 2014
The AREVA (Paris:AREVA) Supervisory Board met today under the chairmanship of
Pierre Blayau to examine the financial statements submitted by the Executive
Board for the period ended December 31, 2013. Chief Executive Officer Luc
Oursel offered the following comments on these results:
"The group reached a major milestone in 2013 in turning performance around by
meeting a key objective of the Action 2016 plan: the return to breakeven of
free operating cash flow. For the first time since 2005, cash generated by our
operations allowed us to fully fund strategic capital expenditures essential
to the group’s profitable growth. To achieve this result, we built on robust
growth in nuclear operations, on contributions from our cost reduction plan
and on strict management of capital spending.
However, two projects launched in the previous decade (OL3 and a power plant
modernization) and the Renewable Energies business impacted negatively the
group's 2013 net income.
On the Renewable Energies market, in a situation marked by a reduction of
capital spending by customers, AREVA anticipated the consolidation required in
the sector by implementing industrial partnerships such as the joint venture
project with Gamesa, which aims to create a European champion in offshore
wind. Similar initiatives were undertaken in solar energy and energy storage.
We continue to implement the Action 2016 plan to pursue the group’s recovery.
While the economic environment remains uncertain and projects launched in the
previous decade remain a burden, we forecast further performance improvement
and significant growth in cash flow generation by the end of the plan."
^1 Restated in 2012 for the asset disposal plan and the OL3 insurance
^2 Restated for the impacts of the asset disposal plan in 2012
I – Key financial data of the group
For purposes of comparison and to monitor indicators used in the group's
financial forecasts, the indicators are restated for asset disposals made
under the Action 2016 plan. Asset disposals contributed 218 million euros to
operating income and EBITDA in 2012 in the form of capital gains, and 273
million euros to disinvestments.
Following the announcement on January 20, 2014 of exclusive negotiations with
Gamesa for the creation of a joint venture (50% AREVA, 50% Gamesa) in the
offshore wind field and the launch of active initiatives in the second half of
2013 with potential partners to establish a strategic partnership or to sell
an equity interest in AREVA Solar, and as provided in IFRS 5, revenue from the
Wind Energy and the Solar power operations is no longer included in revenue or
in other consolidated data (Earnings before interest, taxes, depreciation and
amortization, operating income, free operating cash flow). The data for 2012
were thus restated to present proforma information using the 2013
consolidation scope. Income from these operations is presented on a separate
line in the income statement under "net income from discontinued operations".
Consequently, the backlog and sales revenue published on January 30, 2014 were
restated for the Solar power business.
In million euros 2013 proforma
Backlog 41,521 44,602 -6.9%
Sales revenue 9,240 8,886 +4.0%
Of which nuclear operations^1 9,042 8,633 +7.1% LFL
Of which renewables operations 69 117 -35.7% LFL
Restated EBITDA^2 1,043 1,052 -€9m
In percentage of sales revenue +11.3% +11.8% -0.5 pt
Restated EBITDA^2 excluding insurance 1,043 752 +€291m
indemnity received for OL3 in 2012
In percentage of sales revenue +11.3% +8.5% +2.8 pts
Reported EBITDA 1,043 1,270 -€227m
In percentage of sales revenue +11.3% +14.3% -3.0 pts
Restated free operating cash flow before 204 (723) +€927m
Reported free operating cash flow before 204 (450) +€654m
Restated operating income^2 11 88 -€77m
Reported operating income 11 306 -€295m
Net income attributable to owners of the (494) (99) -€395m
Earnings per share -€1.30 -€0.26 -€1.04
Net debt (+) / cash (-) 4,415 4,307 +€108m
Net debt / (net debt + equity) 46.5% 43.7% -2.8 pts
^1 Nuclear operations: Mining, Front End, Reactors & Services and Back End BGs
plus the Engineering & Projects Organization (accounted under "Other").
^2 Restated for the impacts of the 2012 asset disposal plan
Backlog visibility and strong revenue growth
The consolidated backlog stood at 41.5 billion euros at December 31, 2013,
down from 44.6 billion euros at December 31, 2012. The group reported
consolidated revenue of 9.240 billion euros in 2013, an increase of 4.0% on a
reported basis and of 6.4% like for like compared with 2012 (see press release
of January 30, 2014).
Increase in Earnings before interest, taxes, depreciation and amortization
(EBITDA)^1(excluding OL3 insurance indemnity received in 2012)
Restated EBITDA^1 was stable compared with 2012 (1.043 billion euros in 2013
vs. 1.052 billion euros in 2012), which included 300 million euros in
insurance indemnity received for the Olkiluoto 3 EPR™ project. EBITDA rose 291
million euros (+39%) excluding this insurance indemnity.
Analysis of EBITDA^1 by Business Group (BG)
Restated^1 EBITDA in the Mining BG was 655 million euros in 2013, compared
with 425 million euros in 2012. Revenue was driven by a sharp increase in
volumes sold this year (+42%) due to the dilution of Russian defense
inventories (under the “HEU” agreements ending on December 31, 2013) and to
the reduction of inventories carried out as part of the Action 2016 plan. This
performance also reflects a favorable resources mix and a good management of
EBITDA in the Front End BG was 328 million euros in 2013, compared with 294
million euros in 2012, which included a gain on the sale of fixed assets in
the amount of 77 million euros. This performance reflects:
*ramp-up of the Georges Besse II enrichment plant;
*the positive impact of performance improvement plans across all Front End
*this in spite of the disbursements related to operations carried out prior
to shutting down industrial facility operations, for which provisions were
set up in previous years.
EBITDA in the Reactors & Services BG was -264 million euros in 2013, down
compared to 2012 (98 million euros), which included 300 million euros from the
insurance indemnity received for the OL3 project. Excluding this insurance
indemnity, EBIDTA was down 63 million euros, mainly due to the burden of the
Olkiluoto3 EPR™ project and a power plant modernization project.
EBITDA for the Back End BG was 531 million euros in 2013, compared with 417
million euros in 2012. This increase reflects in particular the contribution
of non-recurring foreign contracts.
EBITDA in the Renewable Energies BG was -33 million euros in 2013, down from
-14 million euros in 2012. The negative contribution of the BG’s EBITDA comes
from a drop in Bioenergy operations in Brazil.
Reported EBITDA fell from 1.270 billion euros in 2012 to 1.043 billion euros
in 2013, a drop of 227 million euros.
^2 Restated for the asset disposal plan in 2012
Very significant improvement in free operating cash flow
Restated for asset disposals in 2012, free operating cash flow before taxes
was up 927 million euros compared with 2012 (+204 million euros in 2013 vs.
-723 million euros in 2012), thanks to the combined effect of performance
improvement, control of capital spending over the period, and operating
working capital requirement (WCR) optimization, offset in part by the
insurance indemnity received in 2012 for the Olkiluoto3 EPR™ project.
Analysis of change in operating WCR by BG
The change in operating WCR was favorable by 543 million euros in 2013,
compared with 312 million euros in 2012.
The change in operating WCR in the Mining BG was positive by 216 million
euros, compared with a positive contribution of 261 million euros in 2012,
primarily due to the decrease in inventories.
The change in the Front End BG’s operating WCR was positive by 207 million
euros, compared with 7million euros in 2012, mainly due to better management
of trade accounts payable.
The change in operating WCR in the Reactors & Services BG was 166 million
euros, compared with 44 million euros in 2012, reflecting cash provided by
The change in the Back End BG’s operating WCR was positive by 68 million
euros, compared with a negative contribution of 9 million euros in 2012, due
to the receipt of prepayments and to the contribution from non-recurring
The change in the Renewable Energies BG's operating WCR was favorable by 2
million euros, compared with a negative contribution of 46 million euros in
Analysis of capital expenditure by BG
The group’s gross operating capital expenditure totaled 1.428 billion euros in
2013, compared with 2.025 billion euros in 2012.
They were fully funded by the cash flows^1 generated by operating activities
compared with 64% coverage in 2012.
Asset disposals classified in operating cash flow came to 53 million euros in
2013, compared with 284 million in 2012, which mainly included the disposals
of Millennium and La Mancha Resources Inc., in connection with the Action 2016
In 2013, 57% of the group's capital spending was on sites in France.
Restated net operating capital expenditure^1 therefore totaled 1.374 billion
euros in 2013, a downturn of 640 million euros compared to 2012.
Restated net operating capital expenditure^2 for the Mining BG came to 335
million euros in 2013, compared with 497 million euros in 2012. This drop is
the result of the mothballing of the Trekkopje mine in Namibia. In 2013, the
group focused its capital expenditure program on the development of mining
projects in Canada (Cigar Lake) and Niger (Imouraren) and on maintaining
capital expenditure at production sites in Kazakhstan, Canada and Niger.
^1 Before capital spending
^2 Restated for the impacts of the asset disposal plan in 2012
Net operating capital expenditure in the Front End BG came to 727 million
euros, down from 1.182 billion euros in 2012, reflecting a decrease in capital
spending related to the construction of conversion and enrichment facilities
(the Georges Besse II plant had reached 74% of its nominal capacity by the end
The Reactors & Services BG posted net operating capital expenditure of 147
million euros in 2013, down from 198 million euros in 2012. This amount mainly
includes development expenses for the group’s range of reactors and production
capital expenditure in the Equipment business, most notably for a new press at
the Creusot Forge site.
Net operating capital expenditure for the Back End BG remained stable in 2013
at 115 million euros, compared with 115 million euros in 2012. The capital
expenditure increases in the Recycling business was offset by the decrease in
the Logistics business.
Net operating capital expenditure in the Renewable Energies BG came to 12
million euros, up from 3 million euros in 2012. Capital spending focused on
the development of the torrefaction process.
Reported free operating cash flow before tax went from -450 million euros in
2012 to +204 million euros in 2013.
Positive operating income
The group reported operating income of 11 million euros in 2013, compared with
306 million euros in 2012.
Restated for asset disposals in 2012 operating income was down 77 million
euros in 2013 compared with 2012, which had benefitted from the one-time
positive impact of the deployment of a new early retirement plan set up in
March 2012 in the Mining, Front End and Back End BGs, modifying the provisions
of the main early retirement plan of a group subsidiary.
Analysis of operating income by Business Group
Restated operating income^1 for the Mining BG came to 509 million euros,
compared with 134 million euros in 2012, when it included impairment of mining
assets in the total amount of 165 million euros.
Operating income in the Front End BG was 21 million euros, compared with 145
million euros in 2012, a decrease of 124 million euros. In 2012, operating
income had included a gain on the disposal of fixed assets in the amount of 77
million euros. It includes in 2013 a total of 120 million euros in impairment
(compared with 143 million euros in 2012) for:
*intangible assets corresponding to studies to prepare for the construction
of the EREF uranium enrichment plant in the United States in light of
unfavorable changes regarding long-term prices for uranium enrichment
services and the average cost of capital used to calculate the value in
use, and the lack of identified financial partner for the project;
*tangible assets of the ETC joint venture, whose industrial prospects are
affected by postponements of several projects to expand or build
The Reactors & Services BG reported an operating loss of 535 million euros,
compared with a loss of 410 million euros in 2012. It was impacted by 566
million euros in provisions for losses at completion of projects launched in
the previous decade:
*425 million euros for the Olkiluoto 3 EPR™ reactor in Finland. The
accounting scheme applied to the project was modified. In conformity with
paragraph 32 of IAS 11, AREVA stopped recognizing contract costs based on
the project’s percentage of completion in the second half of 2013;
incurred costs are now directly recognized as expenses. Only “definable”
costs that have effectively contributed to the physical completion of the
reactor lead to utilization of the provision for losses to completion. 275
million euros were added to the provision for losses to completion at
December 31, 2013 (in addition to the 150 million euros recognized at June
30, 2013), resulting in a deterioration of its financial position for
which AREVA will seek compensation against TVO. 140 million euros were
directly recognized as expenses in the second half of the year either as
not contributing to project completion due to insufficient efficiency,
attributable to TVO, in the completion of residual construction (in
particular finishing works) or in relation to the continuation of
engineering activities required to validate the detailed architecture of
the instrumentation and control system (“non definable” costs).
*141 million euros for a reactor modernization contract in Europe, where
outage campaigns began in mid-2013.
Operating income for the Back End BG was 308 million euros in 2013, down
compared to 2012 (438 million euros).
The Renewable Energies BG had an operating loss of 39 million euros in 2013,
compared with an operating loss of 20 million euros in 2012.
^1 Restated for the impacts of the asset disposal plan in 2012
Net income attributable to owners of the parent
Net income attributable to owners of the parent is a loss of 494 million euros
in 2013, compared with a loss of 99 million euros in 2012.
*The share in net income of associates was nil in 2013, compared with 11
million euros in 2012.
*Net financial income was -248 million euros in 2013, compared with -318
million euros in 2012. Net borrowing costs totaled -214 million euros in
2013 compared with -181 million euros in 2012. The change in financial
income reflects an improvement over the period of the share related to
end-of-lifecycle operations. The net gain on sales of securities included
in the share related to end-of-lifecycle operations includes 12 million
euros corresponding to the reversal of lasting impairment on securities
sold, compared with 93 million euros at December 31, 2012. At December 31,
2012, income on disposals of investments in associates consisted primarily
of the gain on the disposal of Sofradir shares.
*Net tax income was 62 million euros in 2013, compared with net tax income
of 152 million euros in 2012.
Net debt, liquidity and shareholding
The group had net debt of 4.415 billion euros at December 31, 2013, compared
with 4.307 billion euros at December 31, 2012. This small increase in net debt
mainly reflects tax payments of 143 million euros, financial expenses of 164
million euros and cash used in discontinued operations of 173 million euros,
offset in part by the free operating cash flow from continuing operations of
+204 million euros.
In 2013, the group renewed its undrawn bilateral lines of credit available
until 2015 and its syndicated lines of credit available until 2018, for a
total of approximately 2 billion euros.
In 2013, the group further increased its liquidity as follows:
*a seven-year, 500-million-euro bond issue maturing on September 4, 2020,
with an annual coupon of3.25%;
*a buy back of bonds maturing in 2016 and 2017;
*a private placement for a total of 8 billion yen (approximately 60 million
euros) maturing 2018.
As a result, AREVA’s bond debt was 5.1 billion euros at year-end 2013 and the
group has no major reimbursement due before 2016.
The net cash available^1 to the group at December 31, 2013 was 1.244 billion
With a negative net income attributable to equity owners of the parent and in
accordance with the group’s dividend policy, AREVA’s Supervisory Board will
recommend to the Annual General Meeting of Shareholders that no dividend be
paid for 2013.
The group's shareholding evolved in 2013 with a successful offer of treasury
shares to an employee shareholding program which allowed 14,600 employees in
France, Germany and the United States to become shareholders or holders of
shares in the AREVA Employee Shareholding Plan (i.e. 36% of all eligible
employees and 39% in France), for an average investment of 2,200 euros per
employee, generating 45million euros in cash for the group. Employees hold
approximately 1% of AREVA's share capital as of December 31, 2013.
In addition, AREVA's share liquidity was reinforced in 2013 with the
deployment of a liquidity agreement with Natixis.
^1 Net cash available: cash and cash equivalents less current borrowings
II – Market environment
The difficulties of the nuclear market have persisted since the Fukushima
accident and the short-term outlook is uncertain due to the following:
*the restart of the Japanese reactors is slower than anticipated;
*market prices in the front end of the cycle are lower than those of 2011;
*four reactors were shut down in a difficult economic environment in the
*the financial situation of Western utilities has deteriorated.
However, the market fundamentals for energy, and in particular the growth of
demand for electricity, are unchanged from pre-Fukushima scenarios. In its
World Energy Outlook 2013, the International Energy Agency forecasts annual
growth in installed capacity of about 2%, in line with projections of other
energy agencies. Current developments confirm this trend:
*expected growth in the global installed base: 4 new reactors were
connected to the grid in 2013 and 72 are under construction;
*announcements of new nuclear programs in countries such as Turkey, Poland,
Vietnam and Saudi Arabia;
*confirmation of nuclear programs via replacements or extensions of the
nuclear fleets in some countries, such as the United Kingdom and Brazil.
In this environment, AREVA is positioning itself to take advantage of future
market growth, both in the installed base business and in new builds, while
adjusting to the short-term market configuration.
III – Financial outlook
First adoption of IFRS 11 in 2014
IFRS 11 came into effect on January 1, 2014 and will be applied in 2014. It
eliminates the option authorized by IAS 31 to consolidate joint ventures based
on the proportionate consolidation method.
The main entities of the AREVA concerned by this are AREVA Dongfang, ATMEA,
Cominak, ETC, JV CNNC-AREVA Shanghai Tubing Company (it should be noted that
Wind Energy and Solar power operations will also be concerned when the
partnerships announced or in progress are implemented).
2013 pro forma
Sales revenue €9.240bn €9.062bn
EBITDA (in % of sales revenue) 11.3% 10.7%
Gross capital expenditure €1.4bn €1.4bn
Free operating cash flow before tax €204m €157m
AREVA’s 2014 financial outlook:
*a decrease in organic sales revenue of 2% to 5% (bearing in mind that,
until December 31, 2013, revenue included sales of uranium via so-called
“HEU” agreements, representing 4% of the group's revenue in 2013);
*a slight increase in the EBITDA / sales revenue margin;
*gross capital expenditure of 1.3 billion euros;
*positive free operating cash flow before tax.
AREVA’s financial outlook for the 2015-2016 period:
*organic sales revenue growth of 4 to 5% per year on average;
*EBITDA margin up by 2 points per year on average;
*gross capital expenditure decreasing to 1.1 billion euros per year on
*a significant increase in positive free operating cash flow before tax.
*During its meeting of February 26, 2014, the Supervisory Board approved a
dividend policy consistent with the Action 2016 strategic action plan.
Thus, starting with the dividend paid in 2015 based on the financial
statements for the year ended December 31, 2014, the distribution rate
will be determined within the limit of 25% of net income attributable to
owners of the parent.
AREVA supplies advanced technology solutions for power generation with less
carbon. Its expertise and unwavering insistence on safety, security,
transparency and ethics are setting the standard, and its responsible
development is anchored in a process of continuous improvement.
Ranked first in the global nuclear power industry, AREVA’s unique integrated
offering to utilities covers every stage of the fuel cycle, nuclear reactor
design and construction, and operating services. The group is also expanding
in renewable energies – wind, bioenergy, solar, energy storage – to become a
European leader in this sector.
With these two major offers, AREVA’s 46,000 employees are helping to supply
ever safer, cleaner and more economical energy to the greatest number of
The presentation of AREVA's annual results will be available live on the
Internet on February 26, 2014 at 17:45 CEST. To access the webcast, please
click on the following links:
French version: http://webcast.areva.com/20140226/resultats_annuels_2013/
English version: http://webcast.areva.com/20140226/2013_annual_results/
Upcoming events and publications
April 24, 2014 – 17:45 CEST Press Release
First quarter 2014 revenue and related
May 20, 2014 – 15:30 CEST Combined General Meeting of Shareholders
Tour AREVA – 1 place Jean Millier, 92400
July 31, 2014 – 17:45 CEST Press Release
First half 2014 results
August 1^st, 2014 Telephone conference and webcast
First half 2014 results
*Status of audit of the 2013 financial statements:
The audit of the consolidated financial statements has been completed and the
audit report including certification of the financial statements has been
issued. The 2013 consolidated financial statements have been certified without
reservation and with observations drawing the reader’s attention to the
following items: the uncertainties relating to the difficulties of executing
design and construction contracts for an experimental prototype reactor, the
conditions for carrying out the OL3 contract and the recognition methods of
the latter, discontinued operations, and the valuation methods for
This document contains forward-looking statements and information. These
statements include financial forecasts and estimates as well as the
assumptions on which they are based, and statements related to projects,
objectives and expectations concerning future operations, products and
services or future performance. Although AREVA’s management believes that
these forward-looking statements are reasonable, AREVA’s investors and
shareholders are hereby advised that these forward-looking statements are
subject to numerous risks and uncertainties that are difficult to foresee and
generally beyond AREVA’s control, which may mean that the expected results and
developments differ significantly from those expressed, induced or forecast in
the forward-looking statements and information. These risks include those
explained or identified in the public documents filed by AREVA with the AMF,
including those listed in the “Risk Factors” section of the Reference Document
registered with the AMF on March 28, 2013 and updated with the 2013 half-year
report (which may be read online on AREVA’s website www.areva.com). AREVA
makes no commitment to update the forward-looking statements and information,
except as required by applicable laws and regulations.
Appendix 1 – Income Statement
In million euros 2013 proforma
Revenue 9,240 8,886 +4.0%
Other income from operations 49 63 -€14m
Cost of sales (7,990) (7,955) -€35m
Gross margin 1,299 994 +€305m
Research and development expenses (293) (311) +€18m
Marketing and sales expenses (215) (221) +€6m
General and administrative expenses (390) (406) +16m
Other operating income and expenses (389) 251 -€640m
Operating income 11 306 -€295m
Income from cash and cash equivalents 44 51 -€7m
Gross borrowing costs (258) (232) -€26m
Net borrowing costs (214) (181) -€33m
Other financial income and expenses (34) (137) +€103m
Net financial income (248) (318) +€70m
Income tax 62 152 -€90m
Share in net income of associates 0 11 -€11m
Net income from continuing operations (175) 151 -€326m
Net income from discontinued operations (248) (226) -€22m
Net income for the period (423) (74) -€349m
Of which: Net income attributable to 71 24 +€47m
Of which: Net income attributable to (494) (99) -€395m
equity holders of the parent
Comprehensive income (504) (195) -€309m
Average number of shares outstanding, 380,590,309 381,022,026 ns
excluding treasury shares
Basic earnings per share (in euros) -€1.30 -€0.26 -€1.04
Appendix 2 – Consolidated Cash Flow Statement
In million euros 2013 proforma
Cash flow from operations before interest and 877 836 +41m
Net interest and taxes paid (344) (400) +€56m
Cash flow from operations after interest and tax 534 436 +€98m
Change in working capital requirement 518 310 +208m
Net cash from operating activities 1,052 746 +306m
Net cash from (used in) investing activities (1,364) (1,056) -€308m
Net cash from (used in) financing activities 272 (406) +€678m
Increase (decrease) in securities recognized at 211 (179) +€390m
fair value through profit and loss
Impact of foreign exchange movements (17) (13) -€4m
Net cash from discontinued operations 28 126 -€98m
Increase / (decrease) in net cash 181 (784) +€965m
Cash at the beginning of the year 1,489 2,273 -€784m
Cash at the end of the year 1,670 1,489 +€181m
Appendix 3 – Simplified balance sheet^1
In million euros 12/31/2013 12/31/2012
ASSETS 22,346 21,709
Goodwill 3,864 3,999
Property, plant and equipment (PP&E) and intangible 11,372 10,699
Assets earmarked for end-of-lifecycle operations 6,256 5,912
Equity associates 145 175
Other non-current financial assets 262 294
Deferred taxes (assets – liabilities) 1,122 1,006
Operating working capital requirement -1,318 -601
Net assets from discontinued operations* 643 225
LIABILITIES 22,346 21,709
Equity 5,082 5,556
Provisions for end-of-life-cycle operations 6,437 6,331
Other current and non-current provisions 4,881 4,751
Other assets and liabilities 1,142 691
Net borrowings 4,415 4,307
Liabilities of operations held for sale 389 73
Total – Simplified balance sheet 22,346 21,709
* Excluding equity from discontinued operations
^1Assets and liabilities, including operating working capital, net debt and
deferred taxes are offset in the simplified balance sheet. These items are not
offset in the detailed balance sheet presented in the consolidated financial
Appendix 4 – Definitions
Backlog: The backlog is valued based on economic conditions at the end of the
period. It includes firm orders and excludes unconfirmed options. Orders in
hedged foreign currencies are valued at the rate hedged. Non-hedged orders are
valued at the rate in effect on the last day of the period. The backlog
reported for long-term contracts recorded under the percentage of completion
method and partially performed as of the reporting date is equal to the
difference between (a) the projected sales revenue from the contract at
completion and (b) the sales revenue already recognized for this particular
contract. Accordingly, the backlog takes into account escalation and price
revision assumptions used by the group to determine the projected revenue at
Cash flow from end-of-lifecycle operations: This indicator encompasses all of
the cash flows linked to end-of-lifecycle operations and to assets earmarked
to cover those operations. It is equal to the sum of the following items:
*income from the portfolio of earmarked assets
*cash from the sale of earmarked assets
*full and final payments received for facility dismantling
*minus acquisitions of earmarked assets
*minus cash spent during the year on end-of-lifecycle operations
*minus full and final payments made for facility dismantling.
Earnings before interest, taxes, depreciation and amortization (EBITDA):
EBITDA is equal to operating income plus net amortization, depreciation and
operating provisions (except for provisions for impairment of working capital
items). EBITDA is restated to exclude the cost of end-of-lifecycle operations
for nuclear facilities carried out during the period (dismantling, waste
retrieval and packaging), as well as the full and final payments made or to be
made to third parties for facility dismantling. It should be noted that the
cash flows linked to end-of-lifecycle operations are presented separately.
Foreign exchange impact: the foreign exchange impact mentioned in this release
comes from the translation of subsidiary accounts into the group’s unit of
account. The latter is primarily due to changes in the US dollar in relation
to the euro. AREVA also points out that its foreign exchange hedging policy
for commercial operations aims to shield profitability from fluctuations in
exchange rates in relation to the euro.
Free operating cash flow: Free operating cash flow represents the cash flow
generated by operating activities before income tax. It is equal to the sum of
the following items:
*EBITDA, excluding end-of-lifecycle operations,
*plus losses or minus gains on disposals of property, plant and equipment
and intangible assets included in operating income,
*plus the decrease or minus the increase in operating working capital
requirement between the beginning and the end of the period (excluding
reclassifications, currency translation adjustments and changes in
*minus acquisitions of Property, Plant and Equipment (PPE) and intangible
assets, net of changes in accounts payable related to fixed assets
*plus sales of PPE and intangible assets included in operating income, net
of changes in receivables on the sale of fixed assets
*plus customer prepayments received during the period on non-current assets
*plus acquisitions (or disposals) of consolidated companies (excluding
equity associates), net of the cash acquired.
Gearing: Ratio of net debt / (net debt + equity)
Like-for-like (LFL): at constant exchange rates and consolidation scope.
Net debt (cash): Net debt (cash) is defined as the sum of current and
non-current borrowings minus cash and cash equivalents. NOTA: the AREVA’s
definition of the net debt was modified on December 31^st, 2013 to conform to
the definition published by the Autorité des Normes Comptables. The definition
used previously was the following one: ” the net debt is defined as the sum of
current and non-current borrowings minus cash, cash equivalents and other
current financial assets”. The 2012 comparative data were restated according
to the new definition.
Operating working capital requirement (WCR): operating WCR represents all of
the current assets and liabilities related directly to operations It includes
the following items:
*inventories and work-in-process,
*trade accounts receivable and related accounts,
*other accounts receivable, accrued income and prepaid expenses,
*less: Trade accounts payable and related accounts, trade advances and
*(excluding interest-bearing advances), other operating liabilities,
accrued expenses, and deferred income.
*Note: operating WCR does not include non-operating receivables and
payables such as income tax liabilities, amounts receivable on the sale of
non-current assets, and liabilities in respect of the purchase of
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Marie de Scorbiac, +33 1 34 96 05 97
Philippine du Repaire, +33 1 34 96 11 51
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